Lincoln Educational Services Corporation (NASDAQ: LINC) has reported a strong start to the year with double-digit growth in revenue and student starts for the first quarter ended March 31, 2025, leading to an increased outlook for the full year. Here are the key financial and operational highlights from the first quarter and a comparison with the same period in 2024:
- Revenue increased by 13.7% to $117.5 million.
- Student starts grew by 16.2%, with starts increasing by 20.9% excluding the transitional segment.
- Quarter-end student population rose by 15.2%, or 18.3% excluding the transitional segment.
- Adjusted EBITDA reached $10.6 million, compared to $6.5 million in the previous year.
- Net income stood at $1.9 million, a significant improvement from the $0.2 million net loss in the same period last year.
- Total liquidity was nearly $90 million, with no debt outstanding as of March 31, 2025.
In terms of financial guidance, the company has raised its outlook for the full year 2025 based on the strong first-quarter results and current trends. The new guidance includes an increase in revenue, adjusted EBITDA, net income, and student starts.
The company's growth reflects the continued execution of its expansion strategy, with operational improvements enhancing the scalability of its platform and improving profitability. Lincoln's president and CEO, Scott Shaw, highlighted the successful completion of the transition of all existing programs at its Nashville, Tennessee campus to a new state-of-the-art facility, designed for enhanced operational efficiency through Lincoln’s 10.0 hybrid education delivery model.
The company also announced the amendment of its credit agreement in March, increasing the size of its revolving credit facility from $40 million to $60 million and expanding the accordion feature from $20 million to $25 million, strengthening its financial flexibility to support strategic growth initiatives.
Looking ahead, Lincoln remains focused on new campus development and program replications, with plans to open new campuses in Houston, Texas and Hicksville, New York by the end of 2026. The company also launched two new programs at existing campuses in the first quarter and anticipates rolling out five additional offerings in high-demand fields in the coming months.
Overall, Lincoln Educational Services Corporation's strong first-quarter performance and positive momentum have led to an optimistic outlook for the rest of the year. The company is confident in its ability to achieve its 2027 targets of approximately $550 million in revenue and $90 million in adjusted EBITDA.
The market has reacted to these announcements by moving the company's shares 3.98% to a price of $20.92. If you want to know more, read the company's complete 8-K report here.
